Hello all,

I wrote this program to work out monthly payment for personal loan. Say, you borrow 15000 (principal) at 7.50% APR for 4 years?

So my formula is (maybe wrong):-

1. months = 4 * 12;

2. interest = principal * 7.50 / months;

3. monthlypayment = (principal + Interest) / months;

My monthly payment comes out as 361.38, is this correct?

What is correct formula to do this?

Here is my program, just in case you want to see it. Thanks.

Code:// Calculating loan payment/interest #include <iostream> #include <cmath> #include <iomanip> using namespace std; int main() { char again; do { system("CLS"); double amount, //amount per month principal, //loan amount rate, //interest rate interest, //total interest months, //months years, //years term totalpayment; // set the floating-point number format cout << setiosflags( ios::fixed | ios::showpoint ) << setprecision( 2 ); cout << "Enter amount of loan: "; cin >> principal; cout << "Enter rate ( APR % ): "; cin >> rate; cout << "Enter number of years: "; cin >> years; //some calculation months = years * 12; interest = principal * rate / months; amount = (principal + interest) / months; totalpayment = principal + interest; //display cout << endl << "LOAN CALCULATION:"; cout << endl << "=================" << endl; cout << "Total Loan : " << setw( 8 ) << principal << endl; cout << "Rate APR % : " << setw( 8 ) << rate << endl; cout << "Total years : " << setw( 8 ) << years << endl; cout << "Total interest : " << setw( 8 ) << interest << endl; cout << "Monthly payment : " << setw( 8 ) << amount << endl; cout << "Total Payment : " << setw( 8 ) << totalpayment << endl << endl; cout << "Again y/n? "; cin >> again; } while (again == 'y' ); return 0; }